15% off membership for Easter! Learn more. Close

Waymo is being asked to monetize beyond the ride-sharing use case. What should they do?

Asked at Google
1.5k views
eye 1.5k views eye 1.5k views
Answers (3)
crownAccess expert answers by becoming a member

You'll get access to over 3,000 product manager interview questions and answers

badge Platinum PM

Regarding the time range, I would like to propose the strategy in the coming 5-years, so that Waymo can have the time to adapt and develop. [Sounds good]

The goal of this strategy should be to maximize the revenue of the company in 5 -years. Is it ok? [Yes, go ahead] 

Let's first take a look at waymo, then we can brainstorm the different options Waymo can consider, then we can discuss the pros and cons of those options.

 

First, let's take a look at Waymo:

  • Strength:
    • Advanced technology, a few years ahead of competitors.
    • The technology can free up human from the driving task.
    • The technology is independent from Cars, can be add ons.
    • The technology is safer than human.
    • The technology doesn't has the working hour limit.
  • Weakness:
    • Waymo doesn't make cars
    • Selfdriving kit still expensive
    • It remains a challenge for Waymo/Google to manage large scale operation.
Based on how much Waymo will be involved in the operations, there can be several options:
1. Sell the technology to another company and get 1-off revenue.
2. License the software solution to self-driving car companies and get revenue based on the kits, where the self-driving car company handle the manufacturing, sales and support.
3. Build standardized self-driving kits and sell the product involving the hw/sw to car companies, and the car companies will manufacture the car, integrate the kit and sell/support.
4. In addition to the hw/sw solution, Waymo also set up more services with a fleet of self-driving wehicles, and monetize based on the mileage or transactions. such as:
  • Long distance freight company
  • Local parcel delivery
  • Metro bus system
  • Airport shuttles
5. Waymo can tap into the display within the consumer facing vehicles and integrate with Google's service such as Youtube, Map, Search and Ads and get additional revenue.
 
Prioritization:
 
Taking into account of Google/Waymo's strength and weakness and our objective to monetize, we can rate the different options based on the long term revenue, Investment and Operation complexity.
 RevenueInvestmentOperation
1Low, as it's 1-offLowLow
2Medium, will have continued revenueLowLow
3High, due to higher value shareMediumHigh
4HighHighHigh
5MediumLowLow

Based on the assessment, I will probably wouldn't suggest to go with option 3 and 4 due to Google's weakness in manufacturing and operation. I will suggest Waymo to go ahead with Option 2, to license our SW stack, due to the continued revenue opportunity and low operational needs, and in parallel, pursue option 5 by making sure Google's services are integrated in the target vehicle, similar to the Android approach

Access expert answers by becoming a member
0 likes   |  
1 Feedback
badge Platinum PM

Why has not anyone suggested "Food delivery services" ? Just another idea to kill the pizza delivery job :-)

0
Get unlimited access for $12/month
Get access to 2,346 pm interview questions and answers to give yourself a strong edge against other candidates that are interviewing for the same position
Get access to over 238 hours of video material containing an interview prep course, recorded mock interviews by expert PMs, group practice sessions, and QAs with expert PMs
Boost your confidence in PM interviews by attending peer to peer mock interview practices, group practices, and QA sessions with expert PMs
badge Bronze PM
I try to not follow any framework but just being more logical here.

First, I am not clear with the questions so these are the questions I will ask the interviewer and also make some assumptions.

I understand waymo is an automated ride-sharing project which google has been testing for years now. I assume now the project is live and the model is "riders pay for their rides similar to uber/lyft" The only difference is there is no cost associated with drivers here since it's driverless.

Interview: Yes you are correct

Great, so the way waymo makes money to cover the operational cost and profit margin is just on ride-sharing.

Interview: Yes

So our "Goal" is to think of other strategies to monetize waymo.

Interviewer: Yes, that's correct

Does it have to be waymo itself ? or Can I use waymo technology to come up with a new product or service?

Interviewer: Let's just stick to waymo not keen on new products at this moment.

Thank you, before going into different options. Let's see our strengths, competitors, and user pain points.

Strengths

1) Complete autonomous vehicle, hours of testing, and google technology

2) Smart driving directions/routes and maps

3) Eco friendly and cheaper option

4) Optimal route and riders safety

5) Trust in googles product and technology

6) Integrated with googles ecosystem google maps, notification, voice assistance, search etc

Competitors

1) To my knowledge we have Uber, Lyft experimenting on similar technologies

2) Hude customer base and adoption since these companies launched much before google

3) Their core business is ride-sharing, expertise in this business

Comparing and looking at the option, we have stiff competition with existing services who have already mastered in similar services.

So options for us is to use our technology and trust factor to move into a different segment, acquisition for market share (leaving it out for our case)

The freight services are still in its early stage we have Amazon using drones and Uber testing it out as well. After Covid, we see life has changed and retail and online shopping have increased tremendously. This opens the door for freight services with Nikola and Tesla all working on e-Trucks waymo can collaborate and partner with them for MVP launch. This falls under entering into the delivery market this could proportionally reduce the shipping cost of Google store if complemented.

The other option is waymo can collaborate with the government on transportation projects.
Access expert answers by becoming a member
0 likes   |  
Get unlimited access for $12/month
Get access to 2,346 pm interview questions and answers to give yourself a strong edge against other candidates that are interviewing for the same position
Get access to over 238 hours of video material containing an interview prep course, recorded mock interviews by expert PMs, group practice sessions, and QAs with expert PMs
Boost your confidence in PM interviews by attending peer to peer mock interview practices, group practices, and QA sessions with expert PMs

I don't know if there is any framework to answer such questions. 

Like over here, perhaps I can't ask what is the business goal(it's clear) .
Maybe I can ask do you have any customer segment in mind? 
Do you have any region in mind ( I guess no applicable)?

if none of those frameworks works and it's only about listing the relevant ideas that I can list I will go like this. 

Candidate: So let me first under what Waymo is
It's an autonomous car, that's used for ride-sharing, people use it using an app. 
The current person is perhaps the daily commuters. 
One of the greatest pain points that it solves its, it reduces the stress of driving. 
Is that a fair understanding?
interviewer: Yes

Candidate: I would like to think about what's the strength we have
A) We have these autonomous car/trucks.
B) We have a huge customer base.
C) With Google Maps we have lots of information about, point of interests, restaurents & business. 
D) We have weather information/predictions. 
E ) I am also thinking about what Google sells, ummmm nothing ... 
F) I am also thinking about what all google can advertise to sell, actually a lot.  


1.) Transport small items with safety and security within the same cars. 
2)  Make autonomous delivery service, people can book shipment through a mobile app and those are delivered at the destination and picked by someone else. 
3)  Can be booked like Uber, have our own fleet. 
4) Can be used especially for children, for sending them school and back home 

ideainvestmentUser impactBusiness impact
Transport small items with existing rideshareSmallSmallSmall
Autonomous delivery servicesmedium medium to bigmedium to big
Just like Ubermedium to big big big
children transportmediumbig small
    

I think given that comparison. I would like to go and enter into Uber's market. 
start small from one city and scale later. 

The delivery idea is also good, and If I can be financed for that I will go for both, Uber and Delivery.

But if I have to choose between the two I will select Uber because the TAM is bigger.


--------------
Guys by the way anyone aware of any framework for such questions?

Access expert answers by becoming a member
0 likes   |  
Get unlimited access for $12/month
Get access to 2,346 pm interview questions and answers to give yourself a strong edge against other candidates that are interviewing for the same position
Get access to over 238 hours of video material containing an interview prep course, recorded mock interviews by expert PMs, group practice sessions, and QAs with expert PMs
Boost your confidence in PM interviews by attending peer to peer mock interview practices, group practices, and QA sessions with expert PMs
Get unlimited access for $12/month
Get access to 2,346 pm interview questions and answers to give yourself a strong edge against other candidates that are interviewing for the same position
Get access to over 238 hours of video material containing an interview prep course, recorded mock interviews by expert PMs, group practice sessions, and QAs with expert PMs
Boost your confidence in PM interviews by attending peer to peer mock interview practices, group practices, and QA sessions with expert PMs